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FBN's Liz MacDonald on Charles Schwab's lawsuit against a dozen big banks over interest-rate manipulation.
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-- -- -- Well Federal Reserve chief Ben Bernanke just wrapping up testimony on Capitol Hill some of the lawmakers grill and the Fed chief.
Over the growing rate setting scandal here's -- exchange the Pennsylvania senator Pat -- short time ago.
Why we allowed it to go on the old way when we knew it was flawed from.
The last four years.
With trillions of dollars of our hands a Federal Reserve has no ability to change if you have an enormous influence is an the institutions engaging in that.
We have been in communication with -- -- British Bankers' Association they made some changes but not -- as much as we would like.
Okay the country's biggest brokerage is not end on that rate rigging by Elizabeth without disclosing details in today's bottom line in this.
Thank you and this one yeah we're talking to Charles Schwab it is a country's biggest brokerage they are alleging a Rico racketeering suit.
Against the nation's biggest banks JPMorgan Chase Citigroup Bank of America also -- -- in there.
They're saying that these banks whose twelve banks colluded to -- Libor and -- not have to pay yields.
On tens of billion dollars of worth of short term securities sold to -- bond funds.
And money market funds but the banks are fighting back in recent weeks they filed.
But basically a court filing to dismiss the Rico allegations of dismiss the case they're also talking -- Fox Business here's a Bank of America is saying about this case essentially.
So somehow low rate that the banks voluntarily provide to that brought a private trade group over in Britain that the banks themselves based their -- investments on.
Somehow that's collusion much of this involved.
Thought crimes.
Bank of official goes on to say there's no proof -- -- -- cement systematically.
Colluded to drive down live work.
And the bank went on to say there's no single objectively verifiable.
Colorectal Libor number floating out there in outer space is -- is no -- -- law governing the rate setting process and -- -- say if there was collusion if we is basically told each other.
What we thought the reach should be.
That would be -- red flag -- competitors who would circle around -- like sharks sharks at the bottom line here is essentially deadly in the banks are gonna have a this short straws gonna have a tough time.
Proving collusion.
In this rate rigging case I soluble and -- Reich am I'm pretty surprised at Schwab take on this flight since the very interesting story about -- -- sure tonight.
